Studs Company produces calendars in a one-department process.The following information is available: $\begin{array}{lr}
\text { Direct materials added } & \$ 30,000 \
\text { Direct labor } & \$ 20,700 \
\text { Factory overhead } & \$ 10,350 \
& \
\text { Work-in-process inventory, beginning } & -0- \
\text { Units statted } & 15,000 \
\text { Units completed and transferred out } & 12,000 \
\text { Work-in-process inventory, ending } & 3,000
\end{array}$ The units still in process are 100% complete with respect to direct materials and 50% complete with respect to conversion costs.The equivalent units for materials are _____.
A)12,000
B)15,000
C)13,500
D)3,000

Question

Quizplus · Accepted Answer

The equivalent units for materials are calculated based on the units completed and transferred out plus the units still in process, considering their stage of completion. Since the units still in process are 100% complete with respect to direct materials, the equivalent units for materials are the total units started (15,000), which includes both the completed units (12,000) and the units still in process (3,000).

Studs Company Produces Calendars in a One-Department Process The Units Still in Process Are 100% Complete with Respect